Assuming 1979 as the base prepare new index numbers from the indices given below

Question: Assuming 1979 as the base prepare new index numbers from the indices given below

Year: 1976 1977 1978 1979 1980
Indices: 100 110 125 250 300

Solution:

Base shifting from 1976 to 1978

YearIndices (Base 1976)Base ShiftingNew Indices (base 1979)
1976110(100×100)/25040
1977110(110×100)/25044
1978175(175×100)/25070
1979250(250×100)/250100
1980250(300×100)/250120